Quote:
Originally Posted by GGG
I don’t have a good handle on the opex vs capex of a pipeline system so can’t say the absolute lowest cost you could ship barrels for if the other option was no production.
But if you compare us to Shale we will produce longer and at lower costs. I’m thinking in a world with 30-40 million worth of demand once cars are all electric.
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Looks like it is $3.50-$4.50 CAD depending on grade for TMX from Edmonton to Westridge terminal. Tankers are $1-$5, depending on a lot of factors. This recent article shows US to Asia being $5. With this interesting quote:
Quote:
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"The hike on freight rates came as a shock," said a Singapore-based trader with a North Asian refinery. "The direct outcome is that the U.S. crude is no longer competitive in Asia."
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https://www.reuters.com/markets/comm...ia-2024-01-10/
Which really gets to my point. Markets will find the cheapest closest barrel. Will that be us as prices dip from lower demand? You propose a 30% drop in demand, and I just can't see that as leaving us as the cheapest closest barrel for a lot of markets. Particularly when you add in the condensate cost. Perhaps we should be investing on more synthetic crude production if this is our long term plan.